Case Categories

Share |

Competitive Strategies Case Study

Case Title:

Lowe's, AMD, Target et al: The Second-mover Advantage?

Publication Year : 2006

Authors: Kisholoy, Sumit Kumar Chaudhuri

Industry: Engineering, Electrical and Electronics


Case Code: COM0116

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study

In the world of business, the pioneer or the first-mover in an industry often fails to stand up to the competition from its follower or the second-mover due to its failure to constantly innovate or to take timely and effective competitive decisions. The first-movers tend to cling on to their time-tested strategies, which yield positive results when they are the sole entity in a particular market - a phenomenon known as 'active inertia'. This leads to a decline in their financial position and sometimes put their existence in jeopardy. The second-movers, on the other hand, have been found to gain from the experiences of the pioneer and take full advantage of the pioneer's weaknesses and strategic mistakes.

Pedagogical Objectives:

  • To understand the challenges that a pioneer faces in any industry and the factors that determine the sustainability of its leadership
  • To analyse the various constraints of the first-movers, which are taken advantage of by the second-movers to strengthen their positions
  • To discuss how the first-movers can protect their lead in an industry by keeping competition at bay.

Keywords : First mover's disadvantage; Second mover's advantage; Wal-Mart vs Target; Motorola vs Nokia; Intel vs AMD; Sony vs Samsung; Home Depot vs Lowe's; Marketing myopia; Active inertia; Value innovation; Pioneer-Migrator-Settler map; Competitive Strategies Case Study; New Value Curve; 'Caffeine-induced Oasis'; Core competency development

Contents : 
FirstMover’s Disadvantage or Second Mover’s Advantage?
Comparative Customer Perceptions of Target and Wal-Mart
Nokia 8200 Series and Features
Mobile Phone Market Share
Home Depot vs Lowe’s
Top 10 Global Speciality Retailers
A Bug Called Active Inertia
Customer Evolution: Towards Proactivity

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • Derek W BunnDerek W Bunn

    Professor at London Business School.
    Speaks on Decision Making
  • Prof. Kai-Alexander SchlevogtProf. Kai-Alexander Schlevogt

    Professor of international strategy and leadership at the National University of Singapore (NUS) Business School. He serves as Program Director of the Nestle Global Leadership Program, delivered in association with London Business School.
    Speaks on Emerging Markets
  • Roger L MartinRoger L Martin

    Dean, The Joseph L Rotman School of Management, Toronto.
    Speaks on Corporate Social Responsibility
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA,, Fax: 08147-236653,E-mail:

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap